The idea of this section is not to "pick stocks" but rather understand on how to pick right Stocks with appropriate risk management, so that we can benefit from gains as well as cut short our losses.
Lets look at few candidates...
Lets look at few candidates...
Take a look at below stocks "weekly" charts: (Stocks within 15% of 52 week HIGH)
What does all above stock charts have in common? (Observe)
What should we expect?
Now take a look at below stocks "weekly" charts:
What do we observe here?
How to find such stocks?
Remember, there are many ways to find opportunities, all we need to do is get better at our techniques and improve our skills.
Best of luck!
- Alembic Limited
- Ashok Leyland Limited
- Bajaj Corp Limited
- MRF Limited
- City Union Bank Limited
- Hindustan Zinc Limited
- Interglobe Aviation Limited
- Sunflag Iron and Steel Company Limited
- Coffee Day Enterprises Limited
- Damodar Industries Limited
- Setco Automotive Limited
What does all above stock charts have in common? (Observe)
- Near 52 week HIGH
- Either in consolidation or almost near breakout
- Check recent volume pattern, in most cases we can see massive green volume spikes suggesting someone is buying
What should we expect?
- Wait for stock to breakout
- Be aware that market correction is not over yet
- Once the breakout happens then most likely stock is going to continue its trend higher
Now take a look at below stocks "weekly" charts:
What do we observe here?
- HUGE rise in very short amount of time
- Check out how volume rises as the stock increases rapidly
How to find such stocks?
- Look for stocks with very HIGH volume on daily or weekly charts, volume should be 10 times more than average volume
- Add to your watch list and then wait for the right opportunity, watch out for consolidation for 2-3 weeks
- Enter only when breakout occurs, however do keep a tight STOP below support level to manage risk
Remember, there are many ways to find opportunities, all we need to do is get better at our techniques and improve our skills.
Best of luck!